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EIR workshop payroll and payroll accounting 06 19 13


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June 19, 2013. Dennis Beard spoke at EnterpriseWorks' EIR Workshop. The topic was issues of payroll.

Published in: Business, Economy & Finance
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EIR workshop payroll and payroll accounting 06 19 13

  2. 2.  Offers Professional Advisory Services in: Business strategy Capital formation Transitional executive leadership Organization development Specializes in high technology enterprises Manages Serra Capital I, LP – InvestmentFund with 24 companies in portfolioWHO IS SERRA VENTURES?6/19/2013 2
  3. 3. I. Payroll BasicsII. CalculationsIII. Complicating FactorsIV. PaymentsV. ReportingVI. Penalties and InterestVII. SolutionsVIII.In-House Payroll ProcessIX. Popular Software SolutionsX. Outside Payroll ServiceXI. Popular Outside Payroll ServicesXII. CPA/Accounting FirmsAGENDA6/19/2013 3
  4. 4.  Gross Pay Various amounts withheld to get to net pay Other payments – Employer paidPAYROLL - BASICS6/19/2013 4
  5. 5. CALCULATIONS6/19/2013 5Weekly Totals Basis for CalculationHours 38Rate 22.50$Gross Pay 855.00$Less: "Pre-tax" withholdingsHealth Insurance 40.00 Depends on Plan401K Retirement 42.75 Employee electionNet of Pre-tax withholdings 772.25Less:Federal Income Tax Withheld 154.45 Based on TableSocial Security Tax 47.88 6.20%Medicare Tax 11.20 1.45%Illinois Income Tax Withheld 38.61 5%Total Withheld 252.14Net Pay 602.86$Employer Liabilities:Social Security Tax 47.88 6.20%Medicare Tax 11.20 1.45%Illinois Unemployment 34.20 experience ratedFederal Unemployement 6.84 0.80%Employer portion of Health 100.00 Depends on PlanEmployer match of 401K 42.75 Depends on PlanTotal Employer Liabilities 242.87$
  6. 6.  Gross Pay Less Federal Income Tax Withheld Social Security Medicare State Income Tax Withheld Employee payments for benefits1. Health Insurance2. 401k/retirementCALCULATIONS6/19/2013 6
  7. 7.  Employer matching and other costs Social Security Medicare State Unemployment Federal UnemploymentCALCULATIONS, CONTINUED6/19/2013 7
  8. 8.  Salary vs. Hourly Overtime Multi-state presenceCOMPLICATING FACTORS6/19/2013 8
  9. 9.  Federal Illinois Department of Revenue Illinois Department of Employment Security Benefits6/19/2013 9PAYMENTS
  10. 10.  Federal – 940/941 Illinois – IL940, IDES Other states6/19/2013 10REPORTING
  11. 11.  Late payment Late filing/failure to file Personal liability of officers and directors6/19/2013 11PENALTIES AND INTEREST
  12. 12. 6/19/2013 12“If you are using your payroll taxes due asworking capital, you are probably out ofbusiness and you don’t know it yet.” Late payment of your payroll tax liabilities will be some of the mostexpensive money you can use.
  13. 13.  In-house Processing Outside Payroll Services Accounting Firms6/19/2013 13SOLUTIONS
  14. 14.  Software + in-house expertise Offers flexibility, privacy, may be costeffective Part of your existing accounting package6/19/2013 14IN-HOUSE PAYROLL PROCESS
  15. 15.  Quickbooks – various versions from $100 to$600 Peachtree – around $250 to $250 per year AccountEdge – about $3006/19/2013 15POPULAR SOFTWARESOLUTIONS
  16. 16.  Mostly limited to data input Not much, if any expertise needed Can be cost effective vs. in-house Can handle complications such as multi- stateeffectively6/19/2013 16OUTSIDE PAYROLL SERVICE
  17. 17.  Intuit Online Payroll ONPAY Paychex SurePayroll ProPayroll ADP Bank of America6/19/2013 17POPULAR OUTSIDEPAYROLL SERVICES
  18. 18.  Similar to process of Outside Payroll Service Little knowledge of payroll needed Can be cost effective depending on complexity andservices used May be somewhat more flexible than the outsideservices Often provides best customer service6/19/2013 18CPA/ACCOUNTING FIRMS
  19. 19. 6/19/2013 19QUESTIONS?